Lee's Summit, MO Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- License tax rate
- 5% of gross daily rental receipts
- Early-payment discount
- 2% if paid on time
- Payment due date
- 20th of following month
- Late-payment penalty
- 10% plus 2%/mo., capped 30%
- Max fine for false filing
- $500 and/or 3 months
- Governing division
- City Code ch. 28, div. 7
Summary
Short-term rental hosts must hold a City business license and pay license taxes under Chapter 28, Division 7, which levies a 5% tax on gross daily rental receipts from transient guests, on top of the standard business-license fee and Missouri sales tax.
F.The owner shall pay license taxes in accordance with Chapter 28, Division 7. [Sec. 28-206] In addition to the license fees levied on hotels and motels pursuant to Article II. Occupational License Taxes, of this chapter, there is hereby levied upon every person engaged in the business of operating and carrying on the business of the operation of a hotel or motel, an additional license tax in an amount equal to five (5) percent of gross daily rental receipts derived from transient guests for sleeping accommodations.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 55 | Unified Development Ordinance: Supplement 15).
Full Breakdown
505(F) requires the owner to pay license taxes in accordance with Chapter 28, Division 7 of the City Code, the division covering hotels, motels, and similar places of business. Section 28-206 levies, in addition to the standard occupational license fee, an additional license tax equal to 5 percent of gross daily rental receipts derived from transient guests for sleeping accommodations. Gross daily rental receipts means the entire rental receipt including all taxes, with no deductions (Section 28-205), and a transient guest is anyone occupying a room for 28 consecutive days or less.
Hosts who pay by the due date get a 2 percent discount under Section 28-209; the tax is otherwise due to the City Finance Department monthly, by the 20th of the following month (Section 28-208), and every operator must file a monthly report on the Director of Finance's forms (Section 28-210), which the City may audit against the host's books and records at any reasonable time (Section 28-211). The tax revenue funds the City's Business and Industry Fund for tourism and business promotion (Section 28-207).
A host who has been delinquent three or more months in the preceding year must post financial assurance, such as a cash deposit, letter of credit, or bond, before a license renewal (Section 28-212).
Violations & Fines
Late payment under Section 28-213 adds a 10 percent penalty for the first month unpaid and 2 percent for every month after, capped at 30 percent of the tax owed; the Director of Finance may suspend or revoke the host's business license if the tax isn't paid within ten days of the due date. Filing a false statement or failing to pay can also bring a fine up to $500, imprisonment up to three months, or both, under Section 28-213, separate from the UDO's own Section 1.170 penalties for operating outside Section 6.505's conditions.
Frequently Asked Questions
Do I need a business license to run a short-term rental in Lee's Summit?
What tax rate applies to short-term rental income?
What happens if I pay the license tax late?
Is there a discount for paying on time?
Sources & Official References
Other rules in Lee's Summit
How Lee's Summit compares: Cities with the Highest Short-Term Rental Taxes·Compare Lee's Summit to another location·View the Missouri short-term rentals overview
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